Solo Practice Physicians Linger, Despite Industry Pressure to Consolidate

Solo physician practices have been on the decline for several years, prompted by decreases in federal reimbursement, rising practice costs and pressure to consolidate in the face of healthcare reform, according to a Healthcare Finance News report.

In early July, Merritt Hawkins declared the solo practice "dead," marking the end of an era for physician entrepreneurship and 'mom and pop' medical practices. Despite Merritt Hawkins' declaration, though, many physicians who realize the dire state of solo practice have not given up.

A report from the Physicians Foundation on the future of solo practice insisted that the healthcare industry has exaggerated claims of the institution's demise. The report, written by Jeff Goldsmith, PhD, said the tide toward hospital employment will turn to new models, as hospitals and physicians re-examine their contracts after the initial rush to partner.

A House Small Business Committee hearing also addressed the issue on July 19, when four physicians and Mark Smith, Merritt Hawkins president, discussed the reasons for the decline of solo practice. The representatives gave ideas for saving solo practice, such as eliminating the sustainable growth rate, creating a stable payment process, reducing medical school debt in exchange for practice in areas of need, enacting malpractice tort reform and allowing providers to join together in payor contract negotiation.

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